DAIRY REGULATION

State tightens rules to cut imported milk products

New regulations are aimed at protecting Kenya’s dairy industry against unfair trade practices.

In Summary

• Under the new regulations, the government will after every six months review the prices of raw milk sold by farmers.

• Those operating milk dispensers— otherwise referred to as milk ATMs— will pay Sh2,500 for the operating licence.

Workers at Olkalou Dairy Cooling Plant pour out spoilt milk due to oversupply
GLUT: Workers at Olkalou Dairy Cooling Plant pour out spoilt milk due to oversupply
Image: FILE

The government will take stern action including destruction of illegally imported dairy produce, equipment and additives to protect local farmers, Agriculture CS Peter Kimunya has said.

The directive is part of the new Dairy Industry Regulations released on Wednesday by the CS.

The regulations, Munya said, are aimed at protecting Kenya’s dairy industry against unfair trade practices and further support government efforts to guarantee food security.

The CS spoke in Nairobi during the launch of the Dairy Industry Regulations, 2021. The law requires the regulations be taken through Parliament before enactment.

The regulations come at a time farmers have decried an influx of imported milk leading to poor milk prices locally.

“These regulations will create a vibrant, competitive and profitable dairy industry… concerns over low and fluctuating producer prices have made investments in the sector unprofitable, unstable and uncompetitive,” Munya said.

Under the new regulations, those in the business of vending milk will be required to register with the county government and get an operating licence.

Those operating milk dispensers— otherwise referred to as milk ATMs— will pay Sh2500 for the operating licence.

The regulations give a blueprint on how farmers will enter into contracts to sell their products.

Dairy farmers will be required to register with their respective counties free of charge.

The regulations require that counties conduct registration of dairy farmers in their counties, their dairy herd and the milk produced.

The data will be compiled monthly and be used to monitor whether there is a surplus or shortfall in the dairy industry.

The government will after every six months review the prices of raw milk sold by farmers.

Currently, the Agriculture ministry has set the price at Sh33 per litre of milk.

Munya said that the ministry will continue setting the base price of farmers’ raw milk.

“The regulations will ensure a guaranteed minimum prices on milk sales which will ensure that their investment in dairy farming gives favourable returns every year,” he said.

CS Munya said that the government is considering to lease unused public land for production of animal feeds' raw materials.

He said the groundwork to achieve this has already taken off and is just a matter of time before implementation.

Margret Kibogy, the Kenya Dairy Board managing director, said the milk produced in the country is insufficient.

Kibogy said there is an increase in demand of milk products such as cheese, butter, ghee and yoghurt that cannot be wholly produced by the available milk.

 

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